Dollar Tree 2007 Annual Report Download - page 23

DOLLAR TREE, INC. • 2007 ANNUAL REPORT 21
The following tables summarize our material contractual obligations at February 2, 2008, including both on-
and off-balance sheet arrangements, and our commitments, excluding interest on long-term borrowings (in millions):
Contractual Obligations Total 2008 2009 2010 2011 2012 Thereafter
Lease Financing
Operating lease obligations $1,363.2 $319.0 $284.3 $238.4 $185.8 $129.9 $205.8
Capital lease obligations 0.9 0.3 0.3 0.2 0.1 — —
Long-term Borrowings
Revolving credit facility 250.0 — 250.0 — — — —
Revenue bond financing 18.5 18.5 — — — — —
Interest on long-term borrowings 13.7 11.8 1.9 — — — —
Total obligations $1,646.3 $349.6 $536.5 $238.6 $185.9 $129.9 $205.8
Expiring Expiring Expiring Expiring Expiring
Commitments Total in 2008 in 2009 in 2010 in 2011 in 2012 Thereafter
Letters of credit and
surety bonds $ 108.7 $108.1 $ 0.6 $ — $ — $ — $ —
Freight contracts 191.2 85.0 83.7 14.5 4.5 3.5 —
Technology assets 5.1 5.1 — — — — —
Total commitments $ 305.0 $198.2 $ 84.3 $ 14.5 $ 4.5 $ 3.5 $ —
Lease Financing
Operating Lease Obligations. Our operating lease
obligations are primarily for payments under non-
cancelable store leases. The commitment includes
amounts for leases that were signed prior to
February 2, 2008 for stores that were not yet open
on February 2, 2008.
Capital Lease Obligations. Our capital lease obliga-
tions are primarily for distribution center equipment
and computer equipment at the store support center.
Revolving Credit Facility. In March 2004, we entered
into a five-year Revolving Credit Facility (the Facility).
The Facility provides for a $450.0 million line of cred-
it, including up to $50.0 million in available letters of
credit. Interest is assessed under the line based on
matrix pricing which currently approximates LIBOR,
plus 0.475%. This rate was 4.47% at February 2, 2008.
The Facility also bears a facilities fee, calculated as a
percentage, as defined, of the amount available under
the facility, payable quarterly. The Facility, among
other things, requires the maintenance of certain spec-
ified financial ratios, restricts the payment of certain
distributions and prohibits the incurrence of certain
new indebtedness. The Facility also bears an adminis-
trative fee payable annually. We used availability under
this Facility to repay the $142.6 million of variable-
rate debt and to purchase short-term investments. As
of February 2, 2008, we had $250.0 million outstand-
ing on this Facility.
On February 20, 2008, we entered into a five-year
$550.0 million Credit Agreement (the Agreement).
The Agreement provides for a $300.0 million revolv-
ing line of credit, including up to $150.0 million in
available letters of credit, and a $250.0 million term
loan. The interest rate on the facility will be based, at
our option, on a LIBOR rate, plus a margin, or an
alternate base rate, plus a margin. The revolving line
of credit also bears a facilities fee, calculated as a per-
centage, as defined, of the amount available under the
line of credit, payable quarterly. The term loan is due
and payable in full at the five year maturity date of
the Agreement. The Agreement also bears an adminis-
trative fee payable annually. The Agreement, among
other things, requires the maintenance of certain